AMD has officially posted their financials for Q1 2016 and reported a loss of 13% sequentially and 19% year-over-year. AMD’s total revenue as of Q1 2016 stands at $832 Million which is a 13% decline over the previous quarter that reported a revenue of $958 Million (Q4 2015). AMD reports that during Q1 2016, they managed total cash above their target minimum of $600 million.

AMD Posts Financial Report For Q1 2016 – 13% Loss Compared To Q4 2015

AMD Q1 2016 Financial Results:

The current quarter started with a grim PC market which affected several tech companies that have their tech and products covering the industry. AMD’s revenue declined 13% compared to the last quarter and now stands at $832 million compared to $958 million in the last quarter.

“Our strategy to build a strong business foundation and improve financial performance through delivering great products is beginning to show benefits,” said Lisa Su, AMD president and CEO. “We continued to strengthen the performance of our Computing and Graphics business as our customers and partners show a growing preference for AMD. We are optimistic about our growth prospects in the second half of the year across our businesses based on new product introductions and design wins.”

Q1 2016 Results and Recent Events:

Revenue of $832 million, down 13% sequentially and 19% year-over-year.

Gross margin of 32%, up 2 percentage points sequentially.

Operating loss of $68 million, compared to an operating loss of $49 million in Q4 2015 and non-GAAP operating loss of $55 million, compared to non-GAAP operating loss of $39 million in Q4 2015.

Net loss of $109 million, loss per share of $0.14, compared to a net loss of $102 million, loss per share of $0.13 in Q4 2015 and non-GAAP net loss of $96 million, loss per share of $0.12, compared to non-GAAP net loss of $79 million, loss per share of $0.10 in Q4 2015.

Q1 2016 Commentary:

Based on a 13-week quarter, revenue was $832 million, down 13% sequentially. Computing and Graphics segment revenue was down 2% from Q4 2015, primarily due to decreased sales of client desktop processors. Enterprise, Embedded and Semi-Custom segment revenue was down 24% sequentially, primarily due to lower semi-custom SoC sales. via AMD

Talking on performance of their businesses, AMD’s computing and graphics segment saw an 2% decrease in Q4 with a reported revenue of $460 million as AMD saw decreased sales of client desktop processors and the client notebook processors. On the other hand, the Enterprise, Embedded and Semi-Custom side of business also did not perform well, falling 24% sequentially and 25% year-over-year. This lead to a decreased revenue of US $372 million compared to $488 million in the previous quarter. AMD reports that their semi-custom SOCs didn’t sell well in the current quarter which led to a significant decline.

AMD reported that they have already started shipping Bristol Ridge APUs to OEMs since March. AMD also saw a double digit percentage increase (sequentially) in desktop discrete GPUs largely driven by increased Radeon 300 series sales in the market channel.

AMD Market Segment Performance:

Computing and Graphics operating loss was $70 million, compared to an operating loss of $99 million in Q4 2015, primarily due to lower operating expenses.

Enterprise, Embedded and Semi-Custom operating income was $16 million, down from operating income of $59 million in the prior quarter, primarily due to lower revenue and higher R&D expenses, partially offset by the Q1 2016 $7 million IP licensing gain.

AMD Q1 2016 Product Launches and Announcements:

During Q1 2016, AMD made several announcements and launched new products which included the unveiling of their upcoming 7th generation Bristol Ridge processors, new A-Series and FX processors with the latest CPU coolers, GPU hardware and software specific announcements such as the Radeon Pro Duo, Liquid VR SDK and demonstrated their upcoming Polaris GPUs which will be launching in mid of 2016. Following is the complete list of announcements from AMD:

AMD GPU Roadmaps: AMD disclosed its upcoming GPU architecture roadmap, including “Vega” featuring High Bandwidth Memory 2, which the company plans to follow with the release of “Navi” which will be designed with scalability and next-generation memory.

AMD Polaris GPU Demos: AMD demonstrated its “Polaris” 10 and 11 next-generation GPUs, with Polaris 11 targeting the notebook market and “Polaris” 10 aimed at the mainstream desktop and high-end gaming notebook segment. “Polaris” architecture-based GPUs are expected to deliver a 2x performance per watt improvement over current generation products and are designed for intensive workloads including 4K video playback and virtual reality (VR).

AMD Radeon Pro Duo: AMD continued to expand its leadership position in VR, unveiling new technologies and collaborations across a variety of sectors, including gaming, education, and media. AMD introduced the Radeon Pro Duo GPU, part of the world’s most powerful platform for VR designed for creating and consuming VR content. AMD’s Radeon Pro Duo GPU with its LiquidVR SDK is a platform aimed at most all aspects of VR content creation

GLOBALFOUNDRIES Wafer Supply Agreement (WSA):

Q1 2016 total wafer purchases from GLOBALFOUNDRIES were $183 million, including $155 million of wafer purchases related to the 2015 WSA amendment taken in Q1 2016.

AMD Q2 2016 and Fiscal Year 2016 Guidance

For Q2 2016, AMD expects that their revenue could increase up to 15%-3%. AMD hopes to see growth year over year in 2016 compared to 2015. The growth will be driven by new products for enthusiast, high-performance and workstation class PCs. AMD will be launching products that will be based on their new Zen core architecture for CPUs and Polaris GPU architecture for highly efficient graphics cards.

AMD also expects their semi-custom and embedded business to jump up dramatically with several semi-custom wins ramping in second half of 2016 and 2017.